Marketable Securities

9 Months Ended

Apr. 30, 2016

Marketable Securities [Abstract]

Marketable Securities

Note 3—Marketable Securities

The following is a summary of marketable securities:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Available-for-sale securities:
April 30, 2016:
Certificates of deposit*	$	18,309	$	5	$	(1	)	$	18,313
Federal Government Sponsored Enterprise notes		5,821		10		(3	)		5,828
Mutual funds		5,092		—		(102	)		4,990
Corporate bonds		2,570		24		—			2,594
Equity		2,463		—		(109	)		2,354
U.S. Treasury notes		2,686		43		—			2,729
Municipal bonds		9,822		9		(2	)		9,829
Total	$	46,763	$	91	$	(217	)	$	46,637
July 31, 2015:
Certificates of deposit*	$	22,736	$	3	$	(2	)	$	22,737
Federal Home Loan Bank bonds		795		—		—			795
International agency notes		1,120		—		(1	)		1,119
Mutual funds		5,000		—		(18	)		4,982
Straight Path Communications Inc. common stock		2,086		—		(563	)		1,523
Municipal bonds		9,125		9		(3	)		9,131
Total	$	40,862	$	12	$	(587	)	$	40,287

* Each of the Company’s certificates of deposit has a CUSIP, was purchased in the secondary market through a broker and may be sold in the secondary market.

In July 2015, the Company received 64,624 shares of Straight Path Communications Inc. (“Straight Path”) Class B common stock in connection with the lapsing of restrictions on awards of Straight Path restricted stock to certain of the Company’s employees and the payment of taxes related thereto. The Company spun-off Straight Path in July 2013. As part of the Straight Path spin-off, holders of the Company’s restricted Class B common stock received, in respect of those restricted shares, one share of Straight Path’s Class B common stock for every two restricted shares of the Company that they held as of the record date for the Straight Path spin-off. The Company received the Straight Path shares in exchange for the payment of an aggregate of $2.1 million for the employees’ tax withholding obligations upon the vesting event. The number of shares was determined based on their fair market value on the trading day immediately prior to the vesting date. In September and October 2015, the Company sold all of the shares for $2.6 million and recorded a gain on the sale of $0.5 million.

Proceeds from maturities and sales of available-for-sale securities were $5.5 million and $4.7 million in the three months ended April 30, 2016 and 2015, respectively, and $24.2 million and $16.8 million in the nine months ended April 30, 2016 and 2015, respectively. There were no gross realized gains or losses as a result of sales in the three months ended April 30, 2016 and 2015. The gross realized gains or losses that were included in earnings as a result of sales were gains of $0.5 million and losses of $54,000 in the nine months ended April 30, 2016 and 2015, respectively. The Company uses the specific identification method in computing the gross realized gains and gross realized losses on the sales of marketable securities.

The contractual maturities of the Company’s available-for-sale debt securities at April 30, 2016 were as follows:

	Fair Value
	(in thousands)
Within one year	$	19,174
After one year through five years		18,301
After five years through ten years		1,556
After ten years		262
Total	$	39,293

The following available-for-sale securities were in an unrealized loss position for which other-than-temporary impairments have not been recognized:

	Unrealized Losses		Fair Value
	(in thousands)
April 30, 2016:
Certificates of deposit	$	1	$	3,586
Federal Government Sponsored Enterprise notes		3		1,852
Mutual funds		102		4,990
Equity		109		2,354
Municipal bonds		2		4,957
Total	$	217	$	17,739
July 31, 2015:
Certificates of deposit	$	2	$	2,194
International agency notes		1		1,119
Mutual funds		18		4,982
Straight Path Communications Inc. common stock		563		1,523
Municipal bonds		3		3,466
Total	$	587	$	13,284

At April 30, 2016 and July 31, 2015, there were no securities in a continuous unrealized loss position for 12 months or longer.